The Logic of Taxation -2

There was this comment on my earlier blog on the same subject. The reader has got me wrong in that I wasn't pleading for the government to go soft on people serving in 'government'. I was talking for all people in service. The idea was to explore a way of keeping the Earnings-to-Tax ratios of the businesman and the serviceman on an equitable footing if not loaded in favor or the serviceman. The honorable reader had called my writing 'whining'. Well he/she is entitled to his/her opinion.

I still strongly feel, that we must write, argue & plead, with all the pen-power,lung-power, and the constitutional enforcements of individual rights that we can muster, to make an impression on governments, for in a democracy the voice of the people will have to be heard. I learn that India is one of the countries that taxes less!!! Of course in countries which do tax heavily, the government also takes welfare of taxayers, into consideration in the form of giving out dole, for those who are either unemployed or are thrown out of jobs due to market forces.

Again in those mature democracies where taxation is higher, there is also consciousness among people that everyone acts as an 'informer' to fix him/her tax evasion by notifying the IRS. And being hounded by the IRS is one of the most dreaded fears of an honest citizen. Till a few decades back, tax evasion was one of the biggest menaces but, democracy maturing and the general upward swing in real earnings for most Indians due to a buoyant market has even put politicians on a 'working spree'. I mean we are able to find more state-governments, and the center being lead by people who want to show they are working. IOW, more people seem to be wanting to pay the taxes. Forget about those in service in 'respectable' establishments in the public and private sector, who are taxed at source, but even among the businessmen of reasonable reputation the desire to pay taxes is rather pronounced.

I would like to visit this subject of taxation - I mean my version of equitable taxation a little later; after I collect the necessary statistics to work out the simple Math required for furthering, my argument for Equitable Taxation.